Monday, July 4, 2011

2 IPOs open on same week oversubscribed

* Vellibel One acquires 50% stake in apparel manufacturer

July 3, 2011, 8:14 pm

Two IPOs that opened on the same week were oversubscribed last week.

The Rs. 250 million IPO of Browns Investment Ltd, which opened on June 23, 2011 was 5.3 times oversubscribed last week attracting applications amounting to Rs. 1,333.2 million with 25 bank guarantees accounting for Rs. 862 million of these, a stock exchange filing said.

Small retail investors who had applied for less than 1,000 shares will receive their allotments in full while those who applied for less than 20,000 shares will receive 1,000 shares and 21.8 percent of the balance rounded to the closest hundred.

Non-retail investors who had applied for more than 20,000 shares will be allotted 1,000 shares plus 11.7 percent of the balance, the company announced.

Meanwhile, the Rs. 532 million Vellibel One Ltd IPO which opened the same week, June 21, was 11 times oversubscribed attracting applications amounting in excess of Rs. 6 billion. It announced its basis of allotment in keeping with SEC regulations.

The company last Friday announced that it had acquired a 50 percent stake in issued shares of BOI approved export company Orit Apparels Pvt. Ltd for US$ 7.2 million.

Vellibel One had earlier raised Rs. 4.9 billion through a private placement and plans to utilise these funds, along with the IPO funds, to develop a 300-room hotel in Negombo.

source - www.island.lk

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